Hogs failed below resistance and turned sharply lower. So the near term peak or high is in place with the market poised for a major downward correction. Fresh bellies were quoted sharply lower which hit the cutout hard and spooked the trade, no doubt. Certainly this is the time of year bellies can top out. Weekly pork exports sales were good, up 9% from the 4-week average. Shipments were down 3%. China remains absent. We’ve been commenting on the large activity in Oct hog puts this week and now futures have topped. It appears that concern over the NAFTA talks may be behind the put activity. As reported by the WSJ today the early talks are not going very smoothly. Having NAFTA in place is critical for the pork industry. Look for a choppy early trade likely followed by more selling pressure.

Got out of 10 @ 67.55, 10 @ 67.50, and 10 @ 67.45. That is all the orders I have in at moment but still have several short VVV's.

As you can see from Dennis's comments he is no longer bullish!

Dewey